PETALING JAYA: Electrical engineering service provider HE Group Bhd reported a NET profit of RM1.54 million for the fourth quarter ended Dec 31, 2025 (Q4’25), compared with RM3.36 million in the corresponding quarter a year ago, in line with lower revenue recorded during the period.
Quarterly revenue softened to RM27.40 million from RM34.28 million in Q4’24, mainly due to the near completion of two projects.
Gross profit stood at RM6.4 million versus RM7.2 million a year earlier. However, gross profit margin improved to 23.3% from 21.1%, driven by a higher-margin project mix and the recognition of additional variation orders during the completion phase of projects.
For the full financial year ended Dec 31, 2025 (FY25), HE Group’s net profit came in at RM11.03 million, compared with RM13.68 million in FY24, broadly in line with the lower revenue recorded.
HE Group’s revenue declined to RM123.28 million from RM206.91 million in FY24, largely due to the completion of several major projects, while newly secured data centre and solar projects only commenced mainly in the final quarter of the year.
Gross profit amounted to RM26.0 million compared with RM31.4 million previously. Gross profit margin strengthened to 21.1% from 15.2%, reflecting a more favourable project mix and disciplined cost management.
Managing director Haw Chee Seng said the group is navigating a transitional project cycle but remains confident in its operational strength.
“While we are currently navigating a transitional project cycle, we are proud to have delivered a resilient bottom-line performance. This reflects our disciplined approach to cost management and the operational strength we have built over time,” he said in a statement.
He said demand for artificial intelligence, cloud computing and digital services continues to drive data centre expansion across Asia Pacific, while Malaysia’s 13th Malaysia Plan and National AI Action Plan 2030 support the country’s ambition to become an AI-driven economy.
Haw added that the group recently secured a RM12.6 million contract for power distribution system works from an electronic products manufacturer in Malaysia, strengthening its order book.
As at Dec 31, 2025, HE Group maintained a net cash position, with cash and cash equivalents of RM62.1 million, exceeding total borrowings of RM0.8 million. Net assets per share improved to 16 sen from 14 sen a year ago.
